1 Unpopular Stock That Deserves a Second Chance and 2 That Underwhelm

Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the skepticism is well-placed.

Two Stocks to Sell:

Bally's (BALY)

Consensus Price Target: $16.25 (19.4% implied return)

Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.

Why Do We Pass on BALY?

1. Lackluster 2% annual revenue growth over the last two years indicates the company is losing ground to competitors
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Bally’s stock price of $13.61 implies a valuation ratio of 10.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BALY.

Rocket Lab (RKLB)

Consensus Price Target: $83.96 (27.7% implied return)

Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.

Why Does RKLB Give Us Pause?

1. Suboptimal cost structure is highlighted by its history of operating margin losses
2. Earnings per share have dipped by 33.4% annually over the past three years, which is concerning because stock prices follow EPS over the long term
3. Negative free cash flow raises questions about the return timeline for its investments

At $65.76 per share, Rocket Lab trades at 45.1x forward price-to-sales. If you’re considering RKLB for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Globalstar (GSAT)

Consensus Price Target: $65.67 (11.4% implied return)

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Why Is GSAT a Good Business?

1. Market share has increased this cycle as its 15.6% annual revenue growth over the last five years was exceptional
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
3. Returns on capital are increasing as management’s prior bets are starting to bear fruit

Globalstar is trading at $58.96 per share, or 172.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.